CSX Is Pulling Back Into The Station

CSX Corp. (NASDAQ: CSX) had an impressive move up last week, over 10% including a bit of a pullback on Friday which I believe was just the start of a larger move to the downside. Had I caught the pierce last Thursday of the two trend lines drawn in below, around $29.30, I'd already be in this trade on the short side. But, there may still be an opportunity to get into the trade IF price can retrace back to the trend lines tomorrow; anywhere between $29 and $29.30 is where I would suggest. I think this would be an excellent short for a quick 1-2 week trade with a target area where the 3 Moving Averages (20MA, 50MA, and 200MA) sit around $26.25.

By Pro Trader

Caralee Carlson